5.10

• What do the World Bank, IMF, and WTO have in common regarding their economic approach?

  They follow the Washington Consensus, promoting deregulation and free-market capitalism, supporting reduced government interference in markets.
• What are the positive and negative impacts of IMF and World Bank involvement in development?

  ✅Long-term poverty alleviation (e.g. Ethiopia's safety net program)✅ Infrastructure development (e.g. Pakistan's irrigation via Indus Water Treaty)❌ 1980s SAPs forced countries to cut government spending, privatize, and devalue currency❌ Criticised for undermining national economic sovereignty
• What conditions were included in SAPs for receiving IMF/World Bank help?

  Expand domestic markets, Reduce gov spending, Privatise services, Remove restrictions on capital, Devalue currency to boost exports
• What is the HIPC initiative and what were its requirements?

  Started in 1996 by IMF & World Bank to reduce debt for 36 poor countries 2005: G8 cancelled all debts for 18 HIPCs. Conditions:Good financial management, No corruption and Debt savings used for poverty reduction, health & education
• How did Uganda benefit from HIPC and reforms?

  Debt of $4B in 1990 → debt cancellation in 2005. Reforms: anti-corruption units, PEAP, abolished school fees. Primary enrolment: 3M (1996) → 7M (2007). Under-5 mortality: 152/1000 (1990) → 134/1000 (2006). 6% annual economic growth in early 2000s
• What are the four main types of trade agreements?

  Free Trade Area – No internal tariffs; independent policies. Customs Union – Free internal trade; common external tariffs. Single Market – Free movement of goods, labour, and tariffs. Political Union – Fully unified nations with shared policies & currency
• What role do centripetal and centrifugal forces play in trade blocs?

  Centripetal forces (like shared policies) unite members. Centrifugal forces (like nationalism) can weaken them. Example: Brexit driven by UK concerns over sovereignty despite EU trade benefits